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The Contribution of Domestic Investment, Exports and Imports on Economic Growth: A Case Study of Peru

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  • Bakari, Sayef
  • Fakraoui, Nissar
  • Mabrouki, Mohamed

Abstract

This article has examined the contribution of domestic investment, exports and imports on economic growth in Peru. To achieve this objective, annual data for the period between 1970 and 2017 were used and tested based on Johansen co integration analysis and the vector error correction model. According to the results of the analysis, it has been determined that domestic investment, exports and imports have not any effect on economic growth in the short run and in the long run. These outcomes manifest that trade openness and domestic investments are not beholden as a provenance of economic growth in Peru over this extended period and suffer from many issues and a miserable economic organization.

Suggested Citation

  • Bakari, Sayef & Fakraoui, Nissar & Mabrouki, Mohamed, 2020. "The Contribution of Domestic Investment, Exports and Imports on Economic Growth: A Case Study of Peru," MPRA Paper 99041, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:99041
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    References listed on IDEAS

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    5. Sayef Bakari, 2017. "The Three-Way Linkages Between Export, Import And Economic Growth: New Evidence From Tunisia," Journal of Smart Economic Growth, , vol. 2(3), pages 13-53, December.
    6. Sayef Bakari & Mohamed Mabrouki & Asma Elmakki, 2018. "The Impact of Domestic Investment in the Industrial Sector on Economic Growth with Partial Openness: Evidence from Tunisia," Economics Bulletin, AccessEcon, vol. 38(1), pages 111-128.
    7. Nissar Fakraoui & Sayef Bakari, 2019. "Tie Among Domestic Investment, Exports And Economic Growth: Empirical Analysis From India," Journal of Smart Economic Growth, , vol. 4(1), pages 1-15, Mars.
    8. Islam Hassouneh & Zahra' Fannoun, 2019. "The Causal Relationship between Exports, Imports and Economic Growth in Palestine," Journal of Reviews on Global Economics, Lifescience Global, vol. 8, pages 258-268.
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    11. Sayef Bakari & Nissar Fakraoui & Sofien Tiba, 2021. "Domestic Investment, Export, Import And Economic Growth In Brazil: An Application Of Vector Error Correction Model," Journal of Smart Economic Growth, , vol. 6(1), pages 31-48, Mars.
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    22. Strike Mbulawa, 2017. "The Impact Of Economic Infrastructure On Long Term Economic Growth In Botswana," Journal of Smart Economic Growth, , vol. 2(1), pages 15-33, March.
    23. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    24. Sayef Bakari, 2017. "The Relationship between Export, Import, Domestic Investment and Economic Growth in Egypt: Empirical Analysis," EuroEconomica, Danubius University of Galati, issue 2(36), pages 34-43, November.
    25. Faisal FAISAL & Turgut TURSOY & Nil GUNSEL RESATOGLU, 2017. "Is Export-Led Growth Hypothesis Exist in Saudi Arabia? Evidence from an ARDL Bounds Testing Approach," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 5(1), pages 110-117, March.
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    27. Bakari, Sayef, 2018. "The Impact of Domestic Investment on Economic Growth New Policy Analysis from Algeria," Bulletin of Economic Theory and Analysis, BETA Journals, vol. 3(1), pages 35-51, March.
    28. Forgha, Njimanted G. & Mbella, Mukete E. & Ngangnchi, Forbe H., 2014. "“External Debt, Domestic Investment and Economic Growth in Cameroon” A system Estimation Approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1(1), pages 3-16.
    29. Sayef Bakari & Mohamed Mabrouki, 2017. "The Effect Of Agricultural Exports On Economic Growth In South-Eastern Europe: An Empirical Investigation Using Panel Data," Journal of Smart Economic Growth, , vol. 2(4), pages 49-64, December.
    30. Sayef Bakari, 2017. "Appraisal of Trade Potency on Economic Growth in Sudan: New Empirical and Policy Analysis," Asian Development Policy Review, Asian Economic and Social Society, vol. 5(4), pages 213-225.
    31. Sayef Bakari, 2017. "The Impact Of Domestic Investment On Economic Growth: New Evidence From Malaysia," Journal of Smart Economic Growth, , vol. 2(2), pages 105-121, September.
    32. SAIBU, Olufemi Muibi, 2012. "Energy Resources, Domestic Investment and Economic Growth: Empirical Evidence from Nigeria," MPRA Paper 34392, University Library of Munich, Germany.
    33. Bakari, Sayef, 2017. "The Nexus between Export, Import, Domestic Investment and Economic Growth in Japan," MPRA Paper 76110, University Library of Munich, Germany.
    34. Dwi Kartikasari, 2017. "The Effect of Export, Import and Investment to Economic Growth of Riau Islands Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 663-667.
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    36. Sayef Bakari & Mohamed Mabrouki, 2017. "Impact Of Exports And Imports On Economic Growth: New Evidence From Panama," Journal of Smart Economic Growth, , vol. 2(1), pages 67-79, March.
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    Cited by:

    1. Ben Yedder, Nadia & El Weriemmi, Malek & Bakari, Sayef, 2023. "The nexus between domestic investment and economic growth in MENA countries; Do Patents matter?," MPRA Paper 118174, University Library of Munich, Germany.
    2. Mkadmi, Jamel Eddine & Bakari, Sayef & Othmani, Ameni, 2021. "The Impact of Tax Revenues and Domestic Investments on Economic Growth in Tunisia," MPRA Paper 108387, University Library of Munich, Germany.
    3. Akermi, Najwa & Ben Yedder, Nadia & Bakari, Sayef, 2023. "Impact of Final Consumption, Domestic Investment, Exports, and Imports on Economic Growth in Albania," MPRA Paper 118308, University Library of Munich, Germany.
    4. Bakari, Sayef & El Weriemmi, Malek, 2022. "Causality between Domestic Investment and Economic Growth in Arab Countries," MPRA Paper 113079, University Library of Munich, Germany.
    5. Mkadmi, Jamel Eddine & Bakari, Sayef & Msai, Achwak, 2021. "Assessing the Impact of Tax Policies on Economic Growth in Tunisia: New Empirical and Policy Analysis," MPRA Paper 109023, University Library of Munich, Germany.
    6. Bakari, Sayef, 2022. "The Nexus between Domestic Investment and Economic Growth in Developed Countries: Do Exports matter?," MPRA Paper 114394, University Library of Munich, Germany.
    7. Bakari, Sayef, 2022. "The Impact of Natural resources, CO2 Emission, Energy use, Domestic Investment, Innovation, Trade and Digitalization on Economic growth: Evidence from 52 African Countries," MPRA Paper 114323, University Library of Munich, Germany.
    8. Bakari, Sayef, 2022. "Relationship among Domestic Investment, Exports and Economic Growth: Evidence form the Case of Greece," MPRA Paper 114418, University Library of Munich, Germany.
    9. Bakari, Sayef, 2021. "Reinvest the relationship between exports and economic growth in African countries: New insights from innovative econometric methods," MPRA Paper 108785, University Library of Munich, Germany.

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    More about this item

    Keywords

    Domestic investment; Imports; Exports; Economic Growth; Peru;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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